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One hundred compressors of 200 H.P. rating are being considered for purchase by the state highway department. The consumer price index was 400 five years ago and is 520 today. The cost of 150 H.P. compressors bought five years ago is as follows. For the first 50 compressors the cost was $2,000 per unit, and for the second 50 the cost was $2,400 per unit. Find the cost of 100 compressors of 200 H.P. rating today.
Do you agree that the only way to raise equilibrium quantity is to raise supply and demand together? Why agree or why not agree?
Discuss the main factors (supply and demand) affecting the current price of gasoline. Include at least two supply and two demand.
Labor Markets; Further Applications of Microeconomics objective questions and answers, When two goods are perfect complements, the indifference curves are
Determine the marginal cost for bottle of wine and what will be the reduction in number of crashes at that intersection achieved by the mayor?
Assume that all firms in a perfectly competitive market structure are in long run equilibrium. The demand for the company product rise.
Let us assume that an economy in which there is no widely agreed upon form of money. In other words, suppose we are dealing with a barter economy.
What subsidy is necessary to induce the monopolist to produce the socially optimal level of output?
Higher interest rates have an impact on the value of the dollar. What is the effect and how does this relate to foreign trade?
Using the ideas of marginal costs and marginal revenues, describe why economic profits are maximized where marginal revenue equals marginal cost and why profits decline if price is above or below the profit maximizing price.
Many hotels charge higher prices during the holiday period and yet there is higher demand for hotel accommodation during these periods. Is this a violation of the law of demand? Explain your answer and use theory and illustrations to support your ..
Which of the following is an example of a two-part tariff? Which of the following industries is most likely closest to achieving perfect price discrimination?
What is the profit-maximizing price of carpets? What is the maximum amount of profit that the firm can earn selling carpets?
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